As you probably know, the county commission has passed a measure that would allow a 2 percent tax on food and drinks purchased in restaurant. It won’t happen right away because it requires a state law be passed allowing it. The Memphis Restaurant Association is against the tax and wants support contacting your state senator to voice your opposition. Of course, if you’re not opposed, you could contact your senator and voice your support. How do you feel about the proposed tax? Will it keep you home? Here’s a list of three senators the MRA has identified as the key ones:
District 28, Jim Kyle, 527-4050/ 615-741-4167
District 30, Beverly Marrero, 615-741-9128
District 33, Reginald Tate, 615-741-9349
Restaurant business
Responses to “Taxing your food”
February 27th, 2008 at 9:46 am
If the 2% tax is to be used to help shift the strain off of those of us who are homeowners, I can’t say I’m against it. Right now, we are bearing the burden of keeping this city and county running. About 30% of my total house payment each month is property tax and I don’t live in what one might call a better neighborhood.
Renters and homeowners alike would have to pay this tax. The 2% increase on a meal ticket that affects everyone won’t keep me at home, but another several hundred in property taxes a year might make me stay home, if not move completely out of the county. Considering the fact I’ve been looking beyond the suburbs that are Desoto, Fayette and Tipton counties, it would make it a rare occasion when I don’t either cook at home or eat at a local hole-in-the-wall joint.
February 27th, 2008 at 11:05 am
This is a regressive tax, meaning that it will have more of an economic impact on people in the lower and middle income brackets who spend a larger percentage of their income on food. I think that what is important here is to look at WHY there is a deficit and to see where the money raised by this tax, if it is implemented, will go. Let’s also keep in mind that the County Commissioners are asking for the right to rewrite a law. This means that every time they are in a budget crunch they could decide to raise taxes on prepared food and beverages. Also, it is important to keep in mind that the County is projecting a deficit of approximately 14.5 million dollars. If they add 2% to the most modest estimated restaurant sales from last year they will raise a minimum of 28 million dollars.
We do not have to accept this tax increase. Perhaps the county should look at other options for resolving their budget shortfall besides trying to tax their way out of it. It will not work. If anyone would like more information on this resolution or to sign an online petition to SAY NO TO THE FOOD AND BEVERAGE TAX, please go to http://www.nofoodandbeveragetax.com/index.htm
February 27th, 2008 at 11:56 am
One word: RIDICULOUS.
I am not as concerned about it being a regressive tax since it is on prepared food, not food from a grocery store. As has been discussed in the past, dining out is a luxury. I remember as a child (and I’m only 33) even going to McDonald’s was a treat, not something we did as a habit.
What concerns me more is that there is the assumption that there has to be a tax increase at all. Why is it that politicians in our county/city always turn to higher taxes as a solution to budget shortfalls? When you or I have a reduction in income because of an illness, job loss, catastrophic event, etc., we turn to the budget and find ways to cut our spending. Or, we accumulate debt, which can only happen for so long for an individual without going bankrupt. I refer everyone to Phil Bredeson’s FABULOUS state of the state speech from January where he addressed how he was going to handle the state’s projected shortfall from the slowing economy WITHOUT additional taxes. Local politicians should follow his lead and find ways to cut the fat and hold the line. I have been a supporter of A.C. Wharton (and I traditionally vote Republican, so that’s saying a lot), but his leadership in this area has been very disappointing to me.
February 27th, 2008 at 12:42 pm
Eli, thank you for the website information - I have already added my name to the petition. I agree this is a dangerous tax to pass because it would open the door to possible future taxes of the same type. I don’t see anyone proposing a tax on any other type business, so this is blatantly singling out restaurants. There was a letter to the editor in the paper this morning, suggesting some alternative tax sources & some of those made a lot more more sense to me than taxing restaurants. Maybe if our city leaders didn’t build or propose a new arena every time the old one no longer supports their expectations, we wouldn’t be having this type of tax proposal now. Among comments from one restaurant owner in the Sunday paper article about Hickory Hill tornado damage & rebuilding, it was stated that people wouldn’t just skip appetizers & desserts…they would stop eating out altogether. If this restaurant tax passes, I predict there will be more restaurant closings than the ones we have already seen reported just this week.
February 27th, 2008 at 12:49 pm
Keep in mind that restaurants already pay 15% usage tax on liquor and wine that comes off the sellng price besides the 9.25% sales tax. For example if you pay $25.00 for a bottle of wine the restaurant only gets $19.90.
February 27th, 2008 at 4:27 pm
we might add that that’s one of the highest usage taxes in the country added to one of the highest sales tax rates.
February 27th, 2008 at 10:26 pm
I can tell you what a lot of people in South Memphis will do if this tax goes through… drive to DeSoto county to eat out.
February 28th, 2008 at 1:01 am
I am tired of having to foot the bill for irresponsible and theiving politicians. We have 1 of the highest tax rates in the region and the county.. I for one will not be going out often..
February 28th, 2008 at 2:57 pm
Instead of moaning about not going out because of the eventuality of a new tax, citizens should exercise their right to contact their representatives and voice opposition. Politicians in need of re-election votes often listen to constituents==if the citizens are vocal enough. If you can blog, you can contact the above mentioned reps and the county mayor.
February 28th, 2008 at 3:08 pm
As you can see, Mayor Wharton and Steve Mulroy, people will not go out as often if this tax passes. Happy now?
So, is it that you do not like restaurants? Do you want them to be forced to close? Please explain yourselves. I can’t understand how educated people, like yourselves, can come to the conclusion that singling out an already overburdened industry is the logical answer to YOUR inability to stay within budget. Do you not see that justifying your actions by repeatedly telling the media (and anyone else who will listen) that this is an elective tax and that people who don’t want to pay it can CHOOSE TO STAY HOME will destroy many beloved Memphis restaurants? Do you have a problem with restaurant owners and their patrons? Are you trying to drive people out of the county with your inability to control your spending and the resulting ridiculously high taxes? You may just succeed!
February 29th, 2008 at 3:46 pm
Kristen, renters do pay property tax as a part of their rent. Every time Memphis annexes an apartment complex, the rent has to go up to cover the taxes. That’s why complex owners fight the annexation. When rents go up, renters move to cheaper complexes.
11 comment.